On Tuesday, Katherine Dowling, Chief Communications Officer (CCO) at Bitwise Asset Management, discussed the firm’s spot Ethereum ETF (exchange-traded fund) application and the possibility of new crypto-related products being approved by the US Securities and Exchange Commission (SEC).
Ethereum ETFs Close To Launch
Katherine Dowling joined Bloomberg Crypto to discuss the progress of Bitwise’s spot Ethereum ETF application. According to the crypto fund’s CCO, the applications are advancing smoothly, with issuers seeing “fewer and fewer issues” in the S-1 amendments.
This suggests that “we are close to the finish line on the launch.” Dowling stated “It’s been a long, hot summer for the issuers” waiting for the launch of the Ethereum ETFs as the applicants don’t have a date yet.
As Chair Gensler said, it’s going to be sometime over the summer. Everyone has a different definition of summer.
Previously, SEC’s chairman, Gary Gensler, stated that the investment products would be approved during the summer. The news has caused speculation about when the products will launch. In late June, Reuters informed that sources close to some applicants believed the Ethereum ETFs could be approved by July 4.
When asked about the retail and institutional demand for Ether-based investment products, the CCO explained that ETH ETFs are a “more nuance sell” than spot Bitcoin ETFs.
However, Dowling considers it has “its own market structure that is explainable.” Although “not as easily explainable as the ‘digital gold’ qualities of Bitcoin,” it is not “a harder sell” than the flagship cryptocurrency.
Bitcoin is the big leader. We are six months behind here, and we are close to the launch of the spot ETH ETFs.
November Elections: The Decisive Moment For More ETFs
Dowling also discussed the possibilities of other crypto-based ETFs being approved by the SEC. The CCO revealed they had discussed the prospect of “what’s coming down the pipe with new products” with the US regulator.
Seemingly, the discussions between the issuers and the SEC have been productive and welcoming:
It is an active dialogue, and I think our communication with the SEC about the prospects of these products has actually been quite welcoming.
Despite the positive response from the US regulator, Dowling believes there’s almost no chance any other crypto-related spot ETF will be approved after Ethereum ETFs.
The CCO considers that those investment products may have to wait on a new SEC chairman; otherwise, “it’s going to be a long haul to get some of these products out in the market given the history.”
Bloomberg ETF analyst Eric Balchunas shared a similar opinion after the news of a Solana spot ETF application being filed. Last month, Balchunas stated that the odds of a Solana ETF being approved in the next twelve months were “tied at the hip” to the November US presidential election.
The ETF analyst reaffirmed his opinion this week when the Chicago Board Options Exchange (CBOE) filed the 19b-4 form for VanEck & 21Shares. According to the post, “Solana ETFs are going to have a final deadline of mid-March 2025.”
Nonetheless, Balchunas considers that the decisive moment will be in November. “If Biden wins, these likely DOA. If Trump wins, anything poss,” said the ETF expert.
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